Contact

FINOVA Group Inc

Scottsdale AZ

United States 85251

999 999 9999

Description

SCOTTSDALE, Ariz. - March 7, 2001 - The FINOVA Group Inc. (NYSE: FNV), a diversified financial services company, and eight of its subsidiaries, including FINOVA Capital Corporation, today voluntarily filed to reorganize their debt under Chapter 11 of the U.S. Bankruptcy Code. The action is part of an agreement announced last week in which Berkshire Hathaway Inc. (NYSE:BRK.A, BRK.B) and Leucadia National Corporation (NYSE and PCX:LUK) would provide FINOVA Capital a $6 billion loan in connection with the restructuring of the company's outstanding bank and publicly traded debt.

Subject to Court approval, FINOVA Capital will use proceeds of the $6 billion senior secured five-year term loan to pay down, at par value, its existing bank and publicly traded indebtedness on a pro rata basis. Under the agreement with Berkshire Hathaway and Leucadia, and pending Court approval, the balance of FINOVA Capital's bank and bond indebtedness will be restructured into approximately $5 billion of new senior notes of FINOVA.

Editable content is available under the terms of the GFDL and the CC By-SA License.
All non-editable content and all content in the Learn section are copyrighted by AboutUs. (See the fine print for details.)